21. Inflation erodes the value of interest and principal payments, and growth can drive interest rates higher by increasing the demand for loans. 22. Investors again focused on smaller-capitalization stocks, which were driven higher by announcements that improved their profit outlook, analysts said. 23. Japanese stocks fell to a three-week low after an unexpected surge in U.S. employment drove interest rates higher in the U.S. and Japan. 24. Last week, Japanese bonds and money market futures fell, driving yields higher, on expectations the Fed would boost rates to keep inflation from accelerating. 25. Now, BBA said profits will be driven higher with acquisitions, internal growth and smaller efforts to control costs. 26. Optimism the German central bank will lower its chief money-market rate, the securities repurchase rate, later this quarter also drove bunds higher, analysts said. 27. Rates have been driven somewhat higher in Europe as markets respond to the rising American rates. 28. Robust demand and dwindling supplies of the metals have driven prices higher, even though exports could resume within the next month. 29. Rising wages eventually could speed up inflation and drive interest rates higher, making it more expensive for companies to expand. 30. Sales of its new Windows NT networking software will drive earnings higher, analysts predicted. |